Reply to "Lamborghini Orange Closes"

You have to be careful of the rumor mill. 'mis-management' is very vague. Manufacturers do not like to close sales point, especially if as stated this one was a very high percentage of the national sales. Companies usualy close Dealerships for 2 reasons Fraudulent behaviours or network realignment; of course profitability is essential. The Bank on the other hand wan't profitability. if sales are very good Companies will usualy help find a new operator. Unfortunately when an owner is not the operator the focus may move to volume to satisfy the manufacturer and profitability takes the wayside. I was once involved with the largest medium heavy truck dealership in NorthAmerica (partialy owned by the company but operated by a potenial future buyer/owner) the payplans were not profit based but volume based. Every month more trucks were sold more parts were sold and more labour was sold.(Service was always running a loss) The 'Owner' and the Managers were making 6 figures and the Company was making sales but the store was eating away to profits. When money ran out a new numbered company would buy to store and the process would start all over again. Anyways market studies were made and this store was closed, sales were absorbed by surounding dealerships. Remember these are not BigMacs at $1.50 but Lambos at +$1.50...K. You know the difference between a 15,000 car and a 150,000 car. The 15,000 car is often an essential and there are 14 different manufactures to compete for the sale. The 150,000 car is a frivolous item and is a decision between a piece of jewelery, art or a property. The potenial owner my go a long distance to acquire (just like we do for our cats)
Back to this thread, not having all the facts (just like George stated in another thread) we shouldn't feed the rumour mill and wish the best to all employees of the dealership. The best of them will find new employment.
Denis